The people of Nandhivaram village feel the presence of a ghost in their surroundings and decide to vacate their residences and migrate to other places. Since there seems to be no security, the government itself declares Nandhivaram a prohibited area and restricts entry into the village.
In this situation, Sathyam Rajesh, a short film-maker living in Chennai, has a mentality of cheating innocent girls for his lust. He pretends to be in love with Sushma Raj and takes her to his friend's bungalow with a false promise. On his way, he inquires the route to Jayaprakash and gets diverted to Nandivaram.
Without knowing the flashback, the pair reaches the palace in Nandivaram. While staying there, they have to bear the tantrums of a ghost that is present in the frame of Trisha. Rajesh can visualize the ghost through his mobile phone and this leaves him scared. At one stage, even Sushna Raj comes to know about the ghost.
Amidst this, Sendrayan also enters the palace, but the ghost haunts the men severely by entering Sushma's body. Neither they are unable to understand the happenings or nor leave the palace. The reasons behind these incidents and the aftermath is narrated in the latter part of the movie.
Trisha has taken up the role of a young girl who has a dream of becoming an actress and looks attractive in various make-overs and costumes. She has also done a great performance in emoting the anger while portraying the ghost role.
Ganesh Venkatraman looks handsome as ever and has excelled in his villainic attitude. Jayaprakash, who comes as the father of Trisha proves his experience with his acting skills, but the confusion in his characterization (whether he is alive or not) stands a hindrance in impressing the audience. Sathyam Rajesh and Sushma have utilized the given opportunities to do their best. Sendrayan, on the other hand, fails to create the comic relief that was expected from him.
With many horror films turning out to be successful in Tamil cinema in recent times, director Govi has utilized this opportunity, but the movie hardly threatens the viewers.
Cinematographer Jagadeesh Cheekati has done a neat job in projecting the characters with perfect lighting as most of the scenes are shot under the night effect. Raghu Kunche's musical score is disappointing and even Sai Karthik fails to bring in the needed horror effect with his BGMs.
On the whole, Nayagi is unattractive.